Is Garmin Ltd. overvalued or undervalued?
As of June 18, 2025, Garmin Ltd. is considered an attractive investment due to its undervalued financial metrics, including a P/E ratio of 28, a favorable EV to EBITDA ratio of 21.25, strong ROCE of 29.58%, ROE of 17.95%, and a one-year stock return of 24.96%, outperforming the S&P 500.
As of 18 June 2025, Garmin Ltd. has moved from a fair to an attractive valuation grade. The company appears to be undervalued based on its financial metrics. The P/E ratio stands at 28, which is lower than its peer Apple, Inc. at 30.03, and its EV to EBITDA ratio is 21.25, also more favorable compared to Motorola Solutions, Inc. at 23.04. Additionally, Garmin's PEG ratio of 3.81 suggests that while growth may be priced in, it is not excessive compared to its peers.Garmin's strong performance is further highlighted by a return on capital employed (ROCE) of 29.58% and a return on equity (ROE) of 17.95%. The company has also demonstrated resilience with a one-year stock return of 24.96%, significantly outperforming the S&P 500's 10.26% return in the same period. Overall, Garmin Ltd. is positioned as an attractive investment opportunity in its sector.
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